Quote
Rally
Range
Rate
Repo - Re-purchase
Resistance
Risk Management
Roll-Over
Settlement
Short
Short Position
Spot
Spot Price
Spread
Stop Loss Order
Support Levels
Swap
Technical Analysis
Tick
Tom-Next - Tomorrow Next
Two Way Price
US Prime Rate
Value Date
Volatility
Volume
Quote
An indicative market price; shows the highest bid and/or lowest ask price available on a security at any given time.
Rally
A recovery in price after a period of decline.
Range
The difference between the highest and lowest price of a future recorded during a given trading session.
Rate
The price of one currency in terms of another.
Repo - Re-purchase
This type of trade involves the sale and later re-purchase of an instrument, at a specified time and date. Occurs in the short-term money market.
Resistance
A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross above. Recurring failure for the price to move above that point produces a pattern that can usually be shaped by a straight line.
Risk Management
To hedge one's risk they will employ financial analysis and trading techniques.
Roll-Over
Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Settlement
The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
Short
To go `short` is to have sold an instrument without actually owning it, and to hold a short position with expectations that the price will decline so it can be bought back in the future at a profit.
Short Position
An investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short.
Spot
A transaction that occurs immediately, but the funds will usually change hands within two days after deal is struck.
Spot Price
The current market price. Settlement of spot transactions usually occurs within two business days.
Spread
The difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.
Stop Loss Order
An order to buy/sell at an agreed price. One could also have a pre-arranged stop order, whereby an open position is automatically liquidated when a specified price is reached or passed.
Support Levels
A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.
Swap
A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Technical Analysis
An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Tick
A minimum change in price, up or down.
Tomorrow Next (Tom/Next)
Simultaneous buying and selling of a currency for delivery the following day.
Two Way Price
Both the bid and ask rate is quoted for a Forex transaction.
US Prime Rate
The interest rate at which US banks will lend to their prime corporate customers.
Value Date
The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
Volatility
A statistical measure of a market or a security's price movements over time and is calculated by using standard deviation. Associated with high volatility is a high degree of risk.
Volume
The number, or value, of securities traded during a specific period.